SDR, something does not sound right with your doctor friend…
From ’99 to ’05, I worked 70 hrs/wk on 2 or 3 jobs/wk as a contractor for major aerospace companies. I earned at least 1/3 to 1/4 of what your doctor friend has made in the last 6 years. During that time I had a mortgage, paid for private school for 2 kids, bought two new vehicles for cash (>$20k), and manage to put $200k (1/3) down and $30k in remodeling for 2700 sf home during the peak year. We still carried the mortgage on the first home for another 15 months. And my wife did not work and we had a son in ’04.
Just in his excess income over and above what I was able to perform in 6 years, he should have been able to pay down his student loans and taxes. It sounds like he spent most of his discretionary income on other things then saving for a home or paying down his student loans. At 40 and 9-10 years earning from 300k, it sounds like he averaged about $400k/yr or 3.6 mil. I just don’t buy he could not have paid off his student loans in that time or at least substantially reduce the amount.
He could have been paying the maximum of $2500/yr interest just to get the tax write-off during and after his first year residency. That alone would have taken off about $25k of interest + any additional accumulated interest + the tax savings.
